Family

Issues

Stage Details

Legislation -
Referred to Committee
(House)
-
April 13, 2009

Legislation -
Bill Passed
(Senate)
(27-19) -
April 1, 2009(Key vote)

Title: Public Service Commission Regulation of New Electric Generation Facilities

Vote Result

Yea Votes

Nay Votes

Vote Smart's Synopsis:

Vote to pass a bill that establishes the goal of the state to be a return to a regulated electric market, and expands the authority of the Public Service Commission to direct the construction of additional electric generation facilities if it is deemed to be in the public interest beginning June 1, 2009.

Highlights:

- Requires electric companies to biennially, or as often as the Commission requires, submit long-range plans regarding the companies electricity needs, and requires the plan to consider the following (Sec. 1):

- The need for new electric generation facilities and the appropriate type of fuel or renewable energy source;
- The need to institute energy efficiency, conservation, and demand response programs;
- The appropriate electricity supply mix for the state;
- The potential impact on rates and charges paid by customers;
- The potential impact on services and conditions of the company's operation; and
- Any other issue the Commission considers relevant to the public interest, convenience, and necessity.

- Requires the Commission to evaluate the long-range plans submitted by electric companies and, upon determination that it is in the public interest, requires the Commission to direct one or more electric companies to (Sec. 1):

- Construct an electric generation facility;
- Secure the necessary electricity through a bilateral contract with another party for all or part of the output of a new electric generation facility located in the state or a new electric generating facility or system located in the state, outside the state, or offshore, provided that it generates electricity using renewable energy sources;
- Secure the necessary electricity through a competitive bidding process in which the company shall solicit bids for all or part of the output of a new electric generation facility located in the state or a new electric generating facility or system located in the state, outside the state, or offshore, provided that it generates electricity using renewable energy sources;
- Secure other new electricity resources, including energy efficiency, conservation, and demand response resources; or
- Any combination thereof.

- Requires the Commission to regulate the price of electricity that is generated by a new electric generation facility or other means required by the Commission, as described above, and is sold to a retail residential or small commercial customer (Sec. 1).
- Requires the Commission to impose a surcharge on electric companies for the electricity generated by a new electric generation facility or other means required by the Commission, as described above, so as to ensure equitable cost sharing among all customers and across all distribution territories (Sec. 1).
- Prohibits the construction of a new electric generation facility unless approved by the Commission, with the following exemptions (Sec. 1):

- Electric generation facility that was approved by the Commission before July 1, 2009;
- On-site generated electricity;
- Electricity generated from a waste-to-energy generation facility;
- Electric generation facility of 70 megawatts or less in capacity;
- Renewable on-site generator, meaning one that generates electricity from a Tier 1 or Tier 2 renewable source;
- Eligible customer-generator, meaning a customer that owns and operates or leases and operates a biomass, solar, or wind electric generating facility that is located on the customer's premises, is interconnected and operated in parallel with an electric company's transmission and distribution facilities, and is intended primarily to offset all or part of the customer's own electricity requirements;
- Electric generation facility that is owned or controlled by a unit of local government; and
- Small rural electric cooperative.

- This bill is sponsored by Senate President Thomas V. Mike Miller, Jr. by request of the Governor.